DEFENCE

Harrier Detachment Afghanistan: Update

John Reid: The United Kingdom is committed to helping the Afghan people rebuild their country as a stable, prosperous and democratic nation free from the twin threats of terrorism and the opium industry. We deliver a significant part of that help through the contribution made by our armed forces to both the US-led coalition and the NATO-led International Security Assistance Force (ISAF). Since October 2004 that contribution has included a detachment of six Harrier GR7 aircraft based in Kandahar in southern Afghanistan. Currently drawn from No. 4 Squadron, Royal Air Force, the detachment provides a rapid and flexible reconnaissance capability, an air presence to reassure the Afghan people of their security and the capacity to strike against the Taliban and the remnants of Al Qaeda in Afghanistan. Throughout its deployment, the detachment has carried out all these tasks with distinction, has produced a disproportionately high operational effect and has deservedly won praise from both the NATO and the coalition authorities.
	The detachment was due to withdraw at the end of June. However, we are currently refining, with our allies and partners, the requirements of the international military forces in Afghanistan, including that for air support. I have concluded that it would be premature to withdraw the Harrier detachment at this stage. I have therefore extended the deployment of the Harrier GR7 detachment for a further two months until the end of August 2005.

ABRO Trading Fund Key Targets for 2005–06

Adam Ingram: The Chief Executive of ABRO has been set the following Key Targets for Financial Year 2005–06.
	Key Target 1: Financial Performance. To achieve at least a 3.5 per cent. Return On Capital Employed (ROCE).
	Key Target 2: Turnover. To achieve a turnover figure of at least £128 million in Financial Year 2005–06.
	Key Target 3: Schedule Adherence. To meet customer agreed targets for delivery schedules on Critical Programme lines.
	Key Target 4: Efficiency. To achieve a value added per employee target of at least £38,000.
	Key Target 5: Winning Work. To achieve a total closing order book of at least £141 million for Financial Year 2005–06

DEPUTY PRIME MINISTER

Council Tax Capping 2005–06

Phil Woolas: On 23 March, my right hon. Friend the Member for Greenwich and Woolwich (Mr. Raynsford) made a statement to the House, announcing that the Government was "designating", under the Local Government Finance Act 1992, nine local authorities which had set excessive budgets for 2005–06, with a view to capping them in year (Official Report, columns 883–92).
	The authorities were given 21 days in which to challenge the maximum budgets we proposed to set for them in 2005–06 and to provide us with information we had requested. All nine authorities challenged their proposed maximum budgets and Ministers have met delegations from all nine authorities to hear their cases in person.
	Having carefully considered the representations made to us, both orally and in writing, and having taken into account all relevant information, I can now announce how we intend to proceed.
	I am laying before the House today for its approval, a draft order setting the following maximum budgets for eight of the designated authorities in 2005–06.
	
		
			 Designated Authority Maximum Budget 
		
		
			 Aylesbury Vale £18,363,000 
			 Daventry £7,779,000 
			 Hambleton £7,397,000 
			 Huntingdonshire £15,160,000 
			 Mid Bedfordshire £11,193,000 
			 North Dorset £5,912,000 
			 Runnymede £8,193,000 
			 South Cambridgeshire £11,350,000 
		
	
	In all but one of these cases, the maximum budget is the same as we proposed in March. The exception is South Cambridgeshire, for which we are setting a higher cap than originally proposed to provide the authority with more time in which to end its reliance on surplus balances. Our expectation is that by using a combination of savings and reserves this year and beyond, it will be able to budget prudently in future. I am satisfied that all the authorities will be able to provide a good service and deliver all of their statutory functions within the revised maximum budgets.
	I am cancelling the designation of Sedgemoor District Council and nominating the authority instead with a proposed notional budget for 2005–06 of £11,974,169. This is the authority's actual budget for 2005–06 less special expenses in the Bridgwater area. We accept that the authority made a genuine mistake in thinking that special expenses did not count against its budget for capping purposes and in believing that its council tax increase was within the "less than five per cent." average which the Government had said that they were expecting nationally. This does not mean that the authority has been "let off". The setting of the proposed notional budget, which is subject to the consideration of any challenge made by the authority, would mean that the authority could not include these special expenses in the baseline against which future increases were measured for capping purposes. This does not set a precedent for our treatment of special expenses in future capping rounds and authorities should be in no doubt that these legally form part of an authority's own budget requirement
	We are writing to all nine authorities today informing them of our decisions. Subject to approval by the House of the draft order laid before it today, the eight designated authorities will need to set revised budget requirements for 2005–06 and rebill their council tax payers for a lower council tax for 2005/06. Sedgemoor District Council now has 21 days in which to challenge its notional budget.
	We are keeping our promise to act on excessive council tax increases. Given that we have increased funding to local government by 33 per cent. in real terms since 1997, and that all authorities have received formula grant increase either in line with or above inflation in all of the last three years, there is no excuse for excessive council tax increases. We will not hesitate to use our capping powers in future years to deal with excessive increases if this proves necessary.

HEALTH

NHS Dentistry Reforms

Rosie Winterton: Last year Harry Cayton, the national director for patients and the public, led a working group that reviewed charges for National Health Service dental treatment. Representatives of patients and consumers and dentists were among those who made a substantial contribution to the work of the group. We have been considering the group's report against the background of the changing patterns of treatment in personal dental services (PDS) contracts that are being piloted in parts of the country.
	I have accepted the working group's recommendation for a new system of patient charges based on three bands, related to the complexity of the treatment provided. The new system will be:
	fairer, reducing the maximum cost of NHS dental treatment by more than half and maintaining the existing exemptions for children under 18, new mothers and those on income related benefits. (These exemptions cover 25 per cent. of all adult treatments provided by the NHS);
	simpler, for both patients and dentists, moving from 400 individual charges to three price bands; and
	clearer, so that patients know how much they are being charged and what treatment they will receive for their money on the NHS.
	The new system will also provide good oral health for patients and reduce the burdens of administering the dental charge system for dentists. It will not increase the proportion of revenue raised from patients' charges.
	Today I am launching a three-month public consultation process on the draft regulations for the new patient charges system. The new arrangements will apply throughout England.
	I am placing copies of the consultation document in the Library. During October, we will analyse the responses to this consultation. Before the Christmas recess, draft regulations will be presented to both Houses for affirmative resolution. The new system will come into effect in April 2006.
	Alongside the proposed changes to NHS charges, I will be publishing an outline of a new contract for NHS dentists. This will encourage the promotion of good oral health and pay dentists for the overall service they provide to patients, rather than on a "fee for service" basis. I will shortly be making available the draft regulations on these new contractual arrangements. Before laying the regulations before Parliament, we will be discussing their content with the profession, NHS management and other key stakeholders—so that effective, workable local contracts can be agreed in order to deliver our commitment to modernise the general dental services (GDS) contract by April 2006. The regulations will include important changes to the current terms of service including compliance with recent guidelines from the National Institute for Clinical Excellence on recall intervals for patients.
	Both the new system of patient charges and the new contract for dentists build on the steps we have already taken to improve dental care for NHS patients, including investing £368 million in dental services in England. In the last six months:
	We have recruited the equivalent of 849 dentists towards our target of recruiting the equivalent of 1,000 by October 2005. This has been achieved through domestic and international recruitment and making available additional capacity from existing dentists to NHS patients.
	Alongside this, we are funding 170 extra training places for dentists in England—a 25 per cent. increase compared with 2004–05, supported by capital investment of £80 million over four years to improve facilities in dental schools.
	The NHS locally has been working hard to recruit dentists and the "Keeping in Touch" scheme is supporting dentists back to practise after a career break.
	We have also speeded up the process for people waiting to take the international qualifying exam (IQE), which enables dentists from non-EU countries to practise in England. One hundred and ninety-nine candidates passed the IQE in 2004 compared with 81 in 2003.
	PDS pilots have expanded from 3,500 dentists in 1,300 dental practices to over 6,000 dentists in 2,200 practices. The proportion of dentists now in PDS is 30 per cent. These dentists are enjoying new ways of working that are also proving popular with patients.
	Taken together, these actions will improve both the short and longer-term supply of dentists for the NHS.
	Against the background of these developments, we have been reviewing the position of PDS contracts. The new ways of working in PDS have benefited patients and dentists alike and from next April will be available to all dentists under the new GDS contract. I have therefore decided that it is best for most of those dentists who have not already moved across to a new contract to do so next April through the new GDS, rather than in piecemeal fashion between now and then. In this way, we can ensure that the lessons of best practice in PDS have been fully learned and that we obtain value for money for the taxpayer under the new GDS contract.
	We will be talking to key stakeholders about these developments. The Department of Health will process applications which it has already received and a number of other exceptional applications between now and next April. Significant numbers of dentists will have moved across to PDS before April 2006. However, the majority will still need to transfer to new contractual arrangements at that point. We are looking to primary care trusts to engage with those dentists in the coming months and secure their commitment to NHS dentistry under the reformed system.
	I can now confirm that the date for full implementation of these dental reforms will be 1 April 2006.

NORTHERN IRELAND

Fourth Report by Justice Oversight Commissioner

Peter Hain: The Government has received and welcomed the fourth report from the Justice Oversight Commissioner, the Rt. Hon. The Lord Clyde, on the progress achieved in implementing the recommendations of the Review of the Criminal Justice System in Northern Ireland. Consistent with his terms of reference, the report was submitted to the Attorney-General, Bridget Prentice, Minister for the Northern Ireland Court Service, and me in June.
	Lord Clyde concludes that the overall picture in recent months is one of major advance. This included, amongst other things, the establishment of the new Public Prosecution Service, the creation of an independent Judicial Appointments Commission and the appointment of new lay magistrates. Lord Clyde commends the significant advances made during the last six months and states that this achievement is to the credit and congratulations of all the criminal justice agencies that have contributed to the progress. The Government warmly endorses these conclusions.
	Copies of the Commissioner's report have been placed in the Library.

TRADE AND INDUSTRY

National Minimum Wage: Low Pay Commission Remit and Enforcement Initiatives

Gerry Sutcliffe: I am pleased to announce that the Government has today written to the Low Pay Commission setting out the terms of reference for their 2006 Report.
	The Commission is asked in particular to:
	consider whether the October 2006 upratings of the adult and development rates recommended in their 2005 Report remain appropriate in the light of economic circumstances and the other factors identified as relevant in that Report, and if not make any recommendations for change;
	review the level of the 16–17 year old rate, keeping in mind the position of the youth labour market and the incentives for young people to participate in education and training;
	review the operation of the accommodation offset and if appropriate make recommendations for any changes needed to the regulations; and
	review the treatment of benefits in kind, including where those benefits are offered as part of a salary sacrifice arrangement.
	The Government will review the position on the older workers' Development Rate and the way the exemption applies to older apprentices, working closely with the Commission, in good time for these issues to be addressed—if appropriate—in the forthcoming age discrimination regulations.
	The Government has asked the Commission to report to the Prime Minister and the Secretary of State for Trade and Industry by the end of February 2006. Copies of the terms of reference have been placed in the Libraries of both Houses.
	I am also pleased to announce that the Government has appointed Heather Wakefield of Unison as a new employee member of the Commission. I would like to welcome Heather to the Commission and also take this opportunity to pass on my thanks to Baroness Margaret Prosser for her contribution in this post over the last five years.

Review of Sustainable Construction

Alun Michael: I am today launching a review of the Government's strategy for sustainable construction. The current strategy was developed in the late 1990s and published by the then Department of the Environment, Transport and the Regions in 2000. Since then there have been significant policy developments relating to construction that are not reflected in this strategy. The purpose of reviewing the strategy is to provide a framework to guide future Government policies where they are relevant to construction. It will focus on the principle of Sustainable Development to which the Government as a whole is signed up.
	Sustainable Development involves balancing and integrating the economic, social and environmental considerations that are relevant to any policy or decision. The review will indicate how, under this umbrella of sustainable development, Government and industry are responding to the challenges of sustainable construction through a sustainable, innovative and productive economy that delivers high levels of employment; and a just society that promotes social inclusion, sustainable communities and personal wellbeing. It will also set out how this is being done in ways that protect and enhance the physical and natural environment, and use resources and energy as efficiently as possible.
	I expect the review to be complete and published by spring 2006.

TRANSPORT

Crossrail—Responses to the Consultation on the Environmental Statement

Derek Twigg: On 23 May the Secretary of State announced that our invitation to the public of 22 February 2005 to comment on the Crossrail Environmental Statement was to be extended to 10 June.
	In accordance with our commitment to present to the House and publish all comments received, we are publishing today a Command Paper Responses to the Government's Consultation on the Crossrail Bill Environmental Statement.
	Copies of the report are being placed today in the Library of the House. The Paper can also be found on the Department for Transport website at www.dft.gov.uk
	A Supplementary Environmental Statement (SES) was published on 26 May. The Department for Transport have invited comments on the SES, and those should be submitted by 8 July 2005. Comments on the SES should be sent to Tim Neate, Consultation Manager, Major Projects Division 3, Zone 2/08, 76 Marsham Street, London, SWIP 4DR (e-mail: crossrail@dft.gsi.gov.uk). All comments received will be presented to Parliament and published.

WORK AND PENSIONS

Annual Report by the President of Appeal Tribunals 2004–05

Anne McGuire: We are pleased to publish today the fifth report by the President of appeal tribunals on the standard of decisions made on behalf of the Secretary of State in cases which come before appeal tribunals. The major reasons given for appeal tribunals overturning or amending decisions were because new evidence was produced at the hearing or the tribunal took a different view of the same evidence. The President maintains the view that an improvement in the attendance of Presenting Officers at tribunal hearings would provide the Department with immediate feedback on the standards of decision making.
	The President has acknowledged there has been an improvement in the way decision makers weigh and view the evidence available to them but the problem remains that that most decisions are overturned because additional evidence is produced at the hearing.
	The President has identified three areas he thinks the agencies need to address; pre-empting the need for additional evidence, the weighing and manner in which medical evidence is used and the quality and content of medical reports. We welcome the President's report which provides an independent view of the standard of Secretary of State decision making in cases coming to the appeal tribunal.
	Copies of the report have been placed in the Library.